Market sources informed SSESSMENTS.COM that local producers in the country adjusted PET offers to lure buyers amid demand conditions. In the local market, PET Bottle offers from a local producer captured stable to softer by THB1,000/ton ($32/ton) compared to last week. Meanwhile, converters reported on receiving offers from two local producers at THB500/ton ($16/ton) lower compared to a fortnight ago. According to market sources, the producers adjusted down the offers in an attempt to lure buyers amid slow demand conditions. However, so far, responses from buyers remain cold and no deals concluded yet. While from the traders’ end, local PET Bottle offers remain stable compared to the same period. In the import market, offers for import Chinese PET Bottle to Thailand stood at $710/ton on LC at sight, CIF Thailand Main Port basis. To export market, a producer reduced PET Bottle offers between $10-20/ton on the weekly comparison.
Demand-wise, demand for PET resins in Thailand is slowing down due to the rainy season. Buyers are not aggressively placing orders on the back weak finished product demand coupled with sufficient inventory on-hand. A converter keeps production at below 50% of the normal rate as demand for the finished products continues to shrink. However, a producer mentioned that demand in the domestic market is better compared to export; the export market is still heavily affected by the COVID-19 pandemic, SSESSMENTS.COM noted.
Thai market players optimistic that PET demand will gradually improve as most businesses in the country have reopened. While for pricing, local PET prices are expected to remain stable onward unless there is a notable change in monomer costs or the crude oil prices, as stated to SSESSMENTS.COM.
